Mahanadi Coalfields gets govt nod for IPO; Coal India to dilute up to 25% stake

The Indian government has approved the proposal for the listing and disinvestment of Mahanadi Coalfields Limited (MCL), paving the way for the coal producer’s potential stock market debut through an initial public offering (IPO).

According to an official communication, the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal had placed the proposal before the Alternative Mechanism (AM) after securing approvals from the boards of Coal India Limited (CIL) and MCL.

MCL, a wholly owned subsidiary of Coal India, is among India’s largest coal-producing companies with operations concentrated in Odisha. The listing would mark another major divestment initiative by the Centre as it seeks to deepen capital markets participation in state-run enterprises.

The AM has now cleared the proposal, allowing CIL to dilute its stake in MCL through an offer for sale (OFS) as part of the IPO and through additional tranches subsequently. The approval also allows MCL to raise fresh capital through issuance of equity shares during the IPO and later via follow-on public offers (FPOs), qualified institutional placements (QIPs) or other Sebi-approved routes.

The government said the disinvestment and fundraising exercises may be carried out either simultaneously or separately and could take place in multiple tranches. However, the total dilution under these mechanisms will be capped at reducing Coal India’s stake in MCL by up to 25%.

Live Events

The proposed listing will remain subject to prevailing market conditions and completion of statutory and regulatory requirements.

One of Coal India's subsidiaries, Central Mine Planning and Design Institute Ltd (CMPDI) was listed in March 2026 via an IPO route. Its IPO was a book built issue of Rs 1,841.45 crores and the issue is entirely an offer for sale of 10.71 crore shares. The public issue was launched at a price of Rs 172 per share. Its shares are currently trading at Rs 232.95 on the NSE.

Meanwhile, Coal India shares ended at Rs 462.20, gaining by Rs 8.15 or 1.79% over the Thursday closing price.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

After Trump tariff, is Indian aviation next US target?

Can GIFT City open doors for Indians missing Korea, Taiwan AI rally?

Why Jio BlackRock is taking a U-turn to reach investors

INR35k-cr windfall: What Hormuz crisis, rising crude mean for ONGC, OIL

Why oil at USD100 doesn’t shake India like it once did

Stock Radar: Cummins India stock hits fresh record high in May 2026 – what should traders do?

1

2

3